Novice and junior miners struggle to raise traditional debt capital when acquiring or developing a mine. However, the successful implementation of a variation on the streaming contract theme provides an interesting alternative for miners lacking the requisite balance sheet capacity to attract traditional debt finance. This form of alternative financing can ensure that junior miners have sufficient cash upfront to acquire, operate and generate profit from a mine. As such, the possibility arises that the ideals laid out in the Preamble of the Mineral and Petroleum Resources Development Act can be realized, specifically that the minerals of South Africa can be used as vehicle for socio-economic upliftment.

Over the last ten years, Africa’s trade growth has been one of the worst among the major global regions, mostly due to falling commodity prices, competition, inadequate foreign exchange liquidity, regulatory challenges and access to trade finance. Although trade finance remains a popular activity among banks, the participation rates have decreased. Despite this persistently large trade finance gap, trade remains a key driver of Africa’s social and economic development. As a result, development finance institutions such as the African Development Bank and the African Export-Import Bank have sought to provide solutions to boost intra-Africa trade.

Our Banking & Finance, Competition & Antitrust, Mergers & Acquisitions and Trade partners in Johannesburg outline ten reasons to turn your attention to African trade and investment opportunities in the coming year. Some of these reasons include the rise in commodity prices, shifting patterns and alternative financing, digitization and competition law and enforcement.